SAK PROPERTY MANAGEMENT LIMITED

Executive Summary

SAK Property Management Limited shows improving financial strength with growing equity and strong net current assets. Liquidity is adequate but dependent on substantial debtor balances, which should be closely monitored. Approval is recommended with conditions focusing on debtor quality and cash flow sustainability.

SAK PROPERTY MANAGEMENT LIMITED - Analysis Report

Company Number: 13029917

Analysis Date: 2025-07-20 12:48 UTC

1. Credit Opinion:
   APPROVE with conditions. SAK Property Management Limited demonstrates solid working capital and equity growth over recent years, indicating an improving financial position and capacity to meet short-term obligations. However, the absence of an audit and reliance on sizable other debtors warrant ongoing monitoring, particularly debtor quality and cash conversion.

2. Financial Strength:
   The company’s balance sheet shows growth in shareholders’ funds from £116k in 2021 to over £2.1M in 2024, reflecting retained earnings accumulation and asset growth. Fixed assets are minimal (£17k) relative to current assets (£3.7M), indicating an asset-light model typical of property development project management. Net current assets improved to £2.1M, bolstering liquidity and financial resilience. The low share capital (£2) is typical for private limited companies but means equity strength depends entirely on retained earnings.

3. Cash Flow Assessment:
   Cash balances are stable around £550k, providing a reasonable liquidity buffer. The significant component of current assets is debtors (£3.19M), which decreased from prior year but remains substantial. Current liabilities fell from £2.32M to £1.62M, improving the net working capital position. The key risk is the concentration and collectability of debtor balances, which represent potential cash flow timing risk. No employees are reported, indicating low ongoing cash outflow pressure.

4. Monitoring Points:

• Debtor aging and collectability: ensure timely conversion to cash to sustain liquidity.
• Contractual terms and dependency on major clients within trade and other debtors.
• Profitability trends once accounts with P&L are available (currently not delivered).
• Confirmation of ongoing project pipeline and revenue visibility in a cyclical property market.
• Director and management oversight given lack of audit and small company exemption.